…As discussed earlier, sole proprietors are considered self-employed,…which comes with its own set of tax obligations.…As of 2014, sole proprietors must pay a self-employment tax…of 15.3% on all business profits of $400 or more.…Sole proprietors can use Schedule SE, Form 1040,…to calculate the tax due on their net earnings.…

You can also use one of the many online self-employment tax…calculators to calculate this tax.…Sole proprietors also need to determine the estimated tax they'll owe…each quarter.…You can use form 1040-ES, estimated tax for individuals, which has a worksheet and…a table tax to help you figure out how much money you need to pay.…You can pay your estimated taxes online, by mail or over the phone.…Form 1040-ES also comes with four vouchers that you…can use to pay by check or money order.…

I personally like to do everything online through…the electronic federal tax payment system or EFTPS website.…Here are the payment due dates.…To avoid penalties, I highly recommend that you…pay your estimated tax in four equal amounts by these dates.…

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Released

7/31/2014

Sole proprietorship, general partnership, corporation, or LLC? Choosing a business structure is one of the tougher decisions web designers face when establishing a new company. In this course, entrepreneur Martha Garzon walks you through the advantages and disadvantages of each business model, and helps you decide which one is right for you. You'll also take a deep dive into two key business structures–sole proprietorship and LLC—to see how they affect licensing and permitting processes, taxes, and recordkeeping for a hypothetical web design business. This practical information will help you clear early legal and financial hurdles, and help make sure your business hits the ground running.